Unit 17 Marketing Intelligence Report: Sainsbury's Customer Analysis

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This comprehensive marketing intelligence report delves into various aspects of marketing strategy, customer behavior, and market analysis, focusing on the context of Sainsbury's. The report begins by examining the stages of the purchase decision-making process, exploring factors that influence customer behavior, and assessing the significance of brand loyalty and corporate image. It then assesses different marketing techniques, including primary and secondary research, and evaluates the validity and reliability of market research findings. The report further analyzes market size trends, conducts competitor analysis, and identifies opportunities and threats. Finally, it explores techniques for gauging customer response, including the application and review of a customer satisfaction survey. The report aims to provide insights and recommendations for Sainsbury's to enhance its marketing strategies and achieve a competitive advantage.
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UNIT 17: MARKETING INTELLIGENCE
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Table of Contents
Introduction:....................................................................................................................................3
Task 1: LO1:....................................................................................................................................3
1.1 Assessment of stages of purchase decision-making process:....................................................3
1.2 Selection of behavior and assessment of its relation with organization:...................................4
1.3 Assessment of factors impact the behavior of the customers:...................................................4
1.4 Assessment of brand loyalty, corporate image, repeats purchasing along with relationship
among them (D1):............................................................................................................................5
Task 2: LO2 (M1, M2, M3):............................................................................................................6
2.1 Assessment of different types of marketing techniques (D1):...................................................6
2.2 Assessment of secondary data to achieve the marketing objectives:........................................6
2.3 Assessment of validity and reliability of market research findings:..........................................7
2.4 Assessment of marketing research plan as per the requirements:.............................................8
Task 3: LO3:....................................................................................................................................8
3.1 Assessment of market size trends:.............................................................................................8
3.2 Assessment of competitor analysis:...........................................................................................9
3.3 Assessment of opportunities and threats (D1):........................................................................10
Task 4: LO4 (M1, M2, M3):..........................................................................................................10
4.1 Assessment of techniques for drawing customer response (D1):............................................10
4.2 Application for customer satisfaction survey:.........................................................................11
4.3 Reviewing the validity of the customer satisfaction survey:...................................................13
Conclusion:....................................................................................................................................14
References......................................................................................................................................15
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Introduction:
To become the pioneer of the retail industry, organizations or enterprises need to undergo several
positive changes which will be comprises of appropriate decision or judgment, learning
behaviors of customers, understanding the importance of brand loyalty and corporate image.
Further, the study would highlight the importance of marketing techniques and market trends and
relate the same with the working environment of Sainsbury organization. Moreover, application
for customer satisfaction survey would also be framed and productive suggestion would be
framed which further would enable the enterprise to gain competitive advantage in the market
place. Thus, the study highlights all the parameters, which are important or relevant for
organization to survive and exist in this modern era or period.
Task 1: LO1:
1.1 Assessment of stages of purchase decision-making process:
The overall decision-making procedure is comprises of five factors, which is mentioned below:
Realization of needs
Required information
Seeking alternatives
Final verdict
Purchase decision-making process would begin with the needs or demands of the customers,
which further enhance the eagerness or the hunger to buy the same. Further, since the customers
are very much advanced in this modern era, they grab information or data from different sources
related to the desire product and even ask for suggestions from close and dear ones (Dalla Pozza,
2014). Furthermore, customers or buyers use to study about all the alternatives available in the
market place and select one, which seems more appropriate over others. Moreover, once the
purchase decision-making process is completed and the customers use to buy one product out of
several alternatives, final verdict of the product comes out which become one of the major factor
behind the satisfaction and dissatisfaction of the customers. Linking the same, since Sainsbury’s
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is one of the largest supermarket in UK, the company offers different types of products for the
customers to buy or purchase (Doligalski, 2015).
1.2 Selection of behavior and assessment of its relation with organization:
Considering the taste and habits of the customers in the current scenario, demands for the
products and services increase if the overall income structure of the individual enhanced. Linking
the same, the overall buyer behavior can be summarized into four concepts, which are mentioned
below.
Theories of economies:
This theory is majorly based on the income earned by the customers and how the same is
spending the income towards acquiring different products from different market place. Further
marginal utility, law of utilization are one of the major factor, which affect the buying decision
of the customers (Lake, 2010).
Theories of psychological:
The main heart of this theory is based on the attractiveness of brand loyalty towards framing
purchase decision-making procedure. Further, the theory also has minimal impact towards the
future decisions of the customers.
Theories of socio cultural:
As mentioned in the name itself, here the purchasing decision of the customer is influenced by
the suggestions given by family, relatives, friend, and other dear ones. Thus, social impact does
play a vital role towards framing the conclusion of the purchase decision-making process of the
customer (Czarniewski, 2014).
1.3 Assessment of factors impact the behavior of the customers:
As mentioned above, the factors, which affect the purchase decision, making process of
customers is never ending in this modern and competitive world, which further is enhancing after
regular intervals. However, between many factors two factors which holds major importance is
mentioned below:
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Personal factor:
With age, occupation, lifestyle, economic condition, the purchase decision of the customer is
driven by many factors in this modern world or era. Further, with time the overall tastes and
habits of the customers also change which affects the purchasing decision of the same. While
many customers are addicted towards acquiring only branded products on the other hands,
customers who are price sensitive are always in search of alternatives, which majorly come from
their nature (Czarniewski, 2014).
Social factor:
Since the parameters of the social cause is huge in this modern and competitive world, factors
affecting the purchasing decision of the customers is also enhancing after regular intervals.
Suggestions, referencing and controlling the purchasing decision of the children is one of the
major factors of social background, which might become problematic for the organization to gain
competitive advantage and survive in the market place (Dalla Pozza, 2014).
1.4 Assessment of brand loyalty, corporate image, repeats purchasing along with
relationship among them (D1):
Brand now a days but a logo, which is gaining the trust and faith of the customers and are
dominating the other available products in the market place. Further, brand also comes with legal
actions and warranty that further satisfy the customers on personal level. Further, branding image
is one of the best marketing techniques available in the market place to dominate the rivals and
gain competitive advantage. Branding image in short words secure the position of the enterprise
for longer period.
Corporate image on the other hand is use of organization goodwill to attract customers from all
over the globe and responsibility of the organization towards its precious customers. Further,
repeat purchasing decision is nothing but retaining the customers to acquire the same product or
avail the same services because of its enhance quality and features (Knox, 2010). Moreover, it is
not to be mentioned that the corporate image of the organization affect the branding strategy that
further result in repeat purchasing decision by the customers. The result of this strategy also
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result in enhance earning of the organization in the market with impressive profit or surplus to
perform the respective actions.
Task 2: LO2 (M1, M2, M3):
2.1 Assessment of different types of marketing techniques (D1):
Marketing techniques enable the organization to fulfill the respective loopholes and enhance the
performance of the enterprise in the minds of the customers. Organization these days use to
conduct market research after regular intervals to grab the valuable feedback and implement the
same while framing any financial and non-financial decision or judgment (Dalla Pozza, 2014).
Linking the same, in order to maintain the reputation or enhance the same, professionals of
Sainsbury use primary and secondary research, which is elaborated in detail below:
Primary research:
Here, the organization seeks assists from renowned market research agencies and use their own
personal system to gather information or data about the preferences of customers or buyers.
Further, the reliability of primary research is more than secondary research and information
gained through it is much more secure than secondary research.
Secondary research:
Here, the information raised from different sources is less reliable however add up to framing
conclusion about fulfilling the loop holes present under different departments or strategies. Since
the sources are available from open sources, the organization should not be depended on the
same for driving different financial and non-financial decision or judgment (Knox, 2014).
2.2 Assessment of secondary data to achieve the marketing objectives:
In order to gain competitive advantage and reduce the pressure of the rivals, Sainsbury should
implement secondary source of data or information to become pioneer and unique in the market
place. Further, secondary collection of data or information would enable the organization to
expand different areas of the market place and implement the research activities to perform better
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in the market place (Kumar, 2010). Some of the areas where secondary collection of data could
be more reliable and satisfactory for Sainsbury are mentioned below:
Market research reports
Information or data related to other retail industries or sector
Information about the marketing strategies of other rivals performing well in the market
place (Lake, 2010)
Information related to products or services preferred by the customers
Linking the same, professionals working under Sainsbury under different department can grab
the information for the following sources:
Marketing information sources available in European Directory
Information about business available in other Directory
Thus, even though the major judgment of the organization is based upon primary research, use of
secondary information for performing the above-mentioned purposes could also be opted by the
enterprise (Kumar, 2010).
2.3 Assessment of validity and reliability of market research findings:
Performing research after regular intervals is not enough, it is also the responsibility of the top
professionals of the organization to review the research and rate the same in the basis of
credibility and outcome (Lake, 2010). Firstly, the professionals that could be either systematic or
non-systematic, after which proper implementation of test-retest method is required to enhance
the credibility of the research and related projects, should rectify errors. After which internal
consistency method could be implemented to enhance the validity and the research towards both
domestic and global market place.
Further, after correcting the systematic errors, the professionals of the organization should test
the validity of the same by calculating the credibility of the outcome of the research. Further,
while the internal validity calculates the inner strength of the research and external validity
defines the external strength of the research (Kumar and Reinartz, 2011). Moreover, to remain
positively correct and enhance the attractiveness of the research, it is important for the
professional of the organization to implement content validity in an appropriate way. Linking the
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same, professionals or employees of Sainsbury should implement the above-mentioned steps in
an appropriate manner.
2.4 Assessment of marketing research plan as per the requirements:
Planning should be done in the first place to ensure that the marketing research is performed in
an appropriate way and outcome coming from the same is beneficial for the entire organization
in different ways. Further, in order to plan marketing research, there are two types of approach
available for Sainsbury, which is quantitative and qualitative. Elaborating more about the same,
while the qualitative research guide the organization about how to target customers, qualitative
research states about other aspects or matters of the marketing sections (Kumar and Reinartz,
2011). Talking about the credibility of the above mentioned research plan, qualitative research is
more reliable than that of qualitative and assist the organization to become the pioneer of the
industry.
Linking the same and considering the current scenario of the Sainsbury to understand the
loopholes present under the customer satisfaction sector, it is necessary for the professionals of
the organization to implement qualitative research and frame a survey. This would be comprises
of several question hitting the critical or sensitive departments of the organization and enhance
the level of customer satisfaction in an appropriate way (Leditschke, 2012).
Task 3: LO3:
3.1 Assessment of market size trends:
The market size trend of Sainsbury is huge in the market place and the major reason behind the
successful running of the organization from last ten decades. Currently, the organization is
standing with 14.2%, which is enhancing after regular intervals and expanding the boundaries of
the enterprise (Pfisterer and Roth, 2015). Further, the overall profit of the organization is
enhancing year after year, which further attracting more and more shareholders and increasing
the revenue of the organization. Further, elaborating about the rivals of the organization then
Tesco is dominating the enterprise with 28.2% of share in the market place and is creating new
ways to satisfy the customers on personal level (Lombardo, 2010).
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Thus, the performance of the organization in this modern era is enhancing after regular intervals,
however the enterprise is in high need of productive marketing strategy to reduce the pressure
coming from different emerging rivals such as Tesco. Moreover, the company should find
different creative ways to attract customer and enhance the parameters of the organization to
become the pioneer of the industry (Lake, 2010).
3.2 Assessment of competitor analysis:
Talking about the well performed organization in PC industry, Acer become one of the largest
rivals of the UK was established in 1976. Further, the organization provides several types of
services such as marketing, design, support, sale, etc.
Apart from Acer, Dell is also one of the strongest organizations in the same industry and the two
often experience competition in the market place (Makasi, 2014).
Market share of different competitors:
Dell Inc - 25.1%
Apple Inc - 21.5%
Lenovo – 19%
Acer – 22%
SWOT analysis of Acer:
Strength:
Technologies available in three different prices of low, high and medium
In terms of merger with different big companies in the market place (Pfisterer and
Roth, 2015)
Capacity and ability of expanding into new market segments
Weakness:
Declining of the market share in different market place
Availability of different brands in the market place (Winer, 2012)
Opportunities:
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Efforts to find new market
Efficient relationship with different companies for emerging technologies
Threats:
Frequency of PC is reduced in the market place
App invention by different enterprises affecting the whole sector or industry
(Winer, 2012)
Reducing the efficiency of Brand loyalty
3.3 Assessment of opportunities and threats (D1):
In this modern era, frequency of companies with PC technologies will be enhancing which
further would grow the market place of the same in an appropriate manner (Miller and
Washington, 2013). Further, the demand and wants of the customers is enhancing after regular
intervals, it is not to be mentioned that more and more new players would be incorporated in the
market place, which become problematic for the existing players. Linking the same, here the
bigger opportunity available for Acer is to expand into new markets and reach to as many
customers around the globe.
Further, the company should maintain cordial relation with other giant organization running in
the same industry so to take help from in case of emergency. Now coming towards the threats
side, disintermediation shifting from the rivals becomes one of the major causes behind the
downfall of the organization in the market place. Further the organization is facing enough
difficulties while expanding brand awareness in the market place which further become major
problematic while surviving in the field of competition or challenge (Pfisterer and Roth, 2015).
Task 4: LO4 (M1, M2, M3):
4.1 Assessment of techniques for drawing customer response (D1):
The assessment of customer responses can be done using the two most widely used techniques
namely online questionnaires and face-to-face questionnaires. The survey as well as the
questionnaires would enable the customers to suggest feedbacks while highlighting their concern
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to the company (Makasi, 2014). On the other hand, from the perspective of the company, it
would help to improve the operations based on the suggestions from the customers and
employees ultimately leading higher efficiency and employee retention ratio.
Online:
Online survey are most comfortable when compared to the traditional face-to-face survey as
there is no need for any field work and the data collected can be analyzed using the Microsoft
excel (Lambardo, 2010). This method of survey would enable the researcher to gather huge
amount of data within a staid time span while on the other hand, also not requiring the presence
of the interviewer.
Face-to-face:
The face-to-face is a time consuming technique of survey however, helps the interviewer to get
the truthful information from the participants (Miller and Washington, 2013). The face-to-face
technique enables the interviewer to get more appropriate and truthful responses when compared
with other techniques of survey.
4.2 Application for customer satisfaction survey:
The customers’ satisfaction survey for the Sainsbury Plc would involve certain basic questions in
the form of:
Name
Age
Educational Qualification
This enables understanding on the customers while helping in decision-making and analysis of
information, then followed by questions pertaining to the company’s products and services as
under:
Question 1: How satisfied are you with Sainsbury’s products and services
Highly satisfied
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Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
Question 2: How long have you been using the products and services of Sainsbury’s Plc?
Less than 3 months
More than 3 months but less than 6 months
6 months – 1 year
3 years
More than 3years
Question 3: Which characteristic do ypu like the most?
Quality
Price
After sales services
Purchasing experience
Question 4: Who according to you is the chief competitor of the company?
Tesco Plc
Waitrose
ASDA Group Limited
WM Morrison Supermarket plc
Question 5: Rate your overall experience with the company
Excellent
Very Good
Good
Bad
Very Bad
Question 6: Would you recommend Sainsbury to your friends and family?
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